Big Four firm, EY, has warned that profits for home insurers could fall into the red in 2018 as rates decrease and costs increase.
Analysis by EY has revealed that the net combined ratio is expected to be a “barely profitable” 99% in 2017, and is expected to worsen further In 2018 to 101.7%.
Home insurers have experienced continued rate deflation of -1% throughout 2017 alongside claims inflation at 3.7% year on year as they struggle to remain competitive in a low interest rate environment with ever rising expenses, says EY.
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